(Bloomberg) -- Walt Disney Co. unveiled a slew of new theme-park attractions, including its first land devoted to movie villains and a doubling of its Avengers Campus in California, as part of an extensive expansion of its resorts business.
The projects were unveiled Saturday at the company’s biennial D23 fan-club convention in Anaheim, California. Disney announced long-term plans for its parks and resorts unit last September that included doubling capital investment to $60 billion over 10 years. Now it’s providing much-awaited details.
The land devoted to villains will be at Walt Disney World’s Magic Kingdom in Florida. The space will be roughly the same size as its sprawling Star Wars-themed lands, and include two attractions, as well as shopping and dining.
In the same park, Frontierland will get an upgrade that includes a Cars-themed area. One ride there will takes guests through the wilderness, past mountains and geysers. Together, the two projects represent the largest expansion ever at the 53-year-old Magic Kingdom.
“Our growth ambition is incredibly high,” Josh D’Amaro, who leads the resorts division, said in an interview. “We wanted the world to know that we’re serious about that and really doubling down on our investment and experiences around the world.”
Disney is forging ahead with the ambitious plans despite a slowdown in its parks business tied to weaker consumer trends. With its most recent earnings on Aug. 7, the company reported lower profit at the resorts, which had been a growth engine in recent years.
The Avengers Campus at Disney’s California Adventure in Anaheim will get two new attractions, including a flight simulator tied to Marvel’s Tony Stark character. The park will also get an attraction devoted to the Pixar film Coco, following the character Miguel Rivera through the Land of the Dead.
That’s in addition to the previously announced Avatar land, which will be based on the second and third films in that series. Construction for all of the projects will begin over the next five years, D’Amaro said.
Disney is planning four new cruise ships, in addition to four already in development and five currently at sea, a huge commitment to that industry. The new ships will be completed between 2027 and 2031.
The company recently announced a new ship that will be based in Singapore. D’Amaro declined to say where the new ones will sail, but suggested more international ports could be on the horizon.
“There’s demand all over the world for these cruise ships,” he said. “We’re gonna be really intelligent in deploying the fleet to bring these stories and experiences to as many people around the world as we can.”
Disney’s Hollywood Studios in Florida will get a land based on Pixar’s Monsters Inc. franchise, including a roller coaster. The nearby Animal Kingdom will get a new ride devoted to Indiana Jones and one recreating the magical house from the animated hit Encanto.
New Spider-Man attractions are coming to Disney parks in Shanghai and Hong Kong. In Paris, the company will build a lake and a separate log flume ride based on The Lion King.
To commemorate the 70th anniversary of California’s Disneyland next year, that park is getting an animatronic version of co-founder Walt Disney.
In the long term, the new attractions could help reinvigorate demand. Chief Financial Officer Hugh Johnston said on a call with investors that the company is forecasting flat sales in the resorts division until mid-2025 as low-income consumers pull back on buying tickets and merchandise, and wealthier guests travel internationally.
The recently weaker performance of Disney parks follows years of ticket price increases that have likely pinched consumers, Dennis Speigel, chief executive officer of consultancy International Theme Park Services, said in an interview.
“Every 10 years or so, we start to hit a pricing wall,” Speigel said. “Disney and Universal were hanging in there pretty well, with guests who’d booked airlines and hotels months in advance still coming. But as we came into 2023, they kept raising the prices, and that’s when the burn-off came and we started hitting the wall again.”
D’Amaro said the company is adept at managing consumer shifts. He said the company can deploy promotions and target very specific audiences, as well as manage costs.
“We have in place very sophisticated tools to manage through these types of fluctuations,” he said. “We’re in such a better position today than we ever have been before.”
Comcast Corp.’s Universal unit also plans a new theme park in Florida that will include a land tied to its lineup of classic film monsters like Frankenstein and Dracula.
D’Amaro didn’t say which villains Disney’s new land will feature, a lineup that could include characters like Cruella de Vil and Maleficent.
“You can expect all of the villains that you can imagine coming together into this land,” he said. “I think this is gonna be one of the most magnificent things our imagineers have ever built.”
Disney unveiled more plans to put its characters in the hit video game Fortnite as part of an ongoing partnership with developer Epic Games.
The announcements capped the second day of D23, a three-day event for Disney superfans. Attendees typically pack the Anaheim Convention Center for displays, panel discussions and shopping tied to the company’s movies, TV shows and theme-park rides.
Guests this year are coming from all 50 states and 36 countries. Attractions include a vintage car exhibit, a celebration of Disney’s Broadway shows and one devoted to the company’s animation studios. Vendors run from art dealers to toymakers and travel agencies.
For the first time, Disney held its largest presentations at a separate arena. Friday’s was devoted to the company’s film and TV business. On Sunday, Disney “legends” including actors Harrison Ford and Jamie Lee Curtis, director James Cameron and composer John Williams will be recognized for their contributions to the company.
The D23 fan club, named after the year the company was founded, has more than 1.5 million members.
“We’ve got confidence in these businesses, and I think that confidence is on full display in terms of these investments that we’re making,” D’Amaro said. “What we’ve always done well is we’ve kept our foot on the gas and we’ve invested for future generations, and we’re doing that now.”
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